Small businesses and sole proprietors with limited physical assets often find it difficult to acquire the funding they need to maintain or to expand their operations, even when they have a steady stream of repeat customers and are consistently earning profits. Traditional banks typically consider these businesses to carry high risk and are unwilling to approve them for financing or will offer lines of credit with astronomical interest rates.

Because of this, many small businesses find themselves turning to alternative lenders to help with their financing needs. Businesses who need unsecured lines of credit still have options. If you have good personal credit history and low debt-to-income ratio, you may be able to qualify for a credit line between $25,000 and $100,000.

There are a couple of ways to secure a line of credit for business owners who have few physical assets or are unwilling to pledge their physical assets as collateral, by leveraging unpaid invoices or large purchase orders instead.

Accounts Receivable Factoring

If your business invoices customers to receive payment for products/services provided within 30 to 90 days, then it would be possible to use those unpaid – yet still current – invoices in lieu of physical asset collateral to secure a business line of credit. In order to qualify for this option, your own customers themselves should have good credit ratings and a history of consistently paying their invoices on time.

Purchase Order Funding

Another way your business could qualify for an unsecured business line of credit would be to use purchase orders. When customers put in large orders for product from you, you might need to get funding in order to fill the order for your customer. In some cases, these large purchase orders could be used in place of physical assets to qualify you for funding.

If you’re looking for an unsecured business line of credit, call Express Capital Financing at 718-285-0806 or email us today at